9M’23 Net profit at AED 209 Million, up 76% YoY3rd quarter Net profit increases 35% sequentially
Press release:
United Arab Bank (UAB) Reports Strong Financial Performance for 9M’23
United Arab Bank (UAB) has announced robust financial results for the nine months ending on September 30, 2023, showcasing continued growth across its core businesses and the effective execution of its turnaround strategy. The highlights of the nine-month period include:
- Net Profit: UAB reported a net profit of AED 209 million, marking a substantial increase of 76% year-on-year and resulting in an EPS of AED 0.10 per share.
- Total Income: Total income surged by 27% year-on-year to AED 447 million, driven by higher net interest income, with the net interest margin (NIM) enhanced to 3.2%.
- Return on Shareholders’ Equity (RoSE): The annualized return on shareholders’ equity improved to 17.8%, compared to 11.0% for the same period in the previous year.
- Asset Quality: UAB witnessed further improvement in asset quality metrics, with the non-performing loan (NPL) ratio reduced to 6.4%, and the coverage ratio improved to 118%.
- Expense Management: The bank demonstrated disciplined expense management, with the cost-income ratio reducing to 47% from 52% year-on-year.
- Capital Position: UAB’s capital position remained robust, with a common equity tier 1 (CET1) ratio of 13.9% and a total capital adequacy ratio (CAR) of 19.8%.
In addition to the nine-month performance, the third quarter of 2023 (3Q’23) also exhibited strong results:
- Net Profit: UAB recorded a net profit of AED 88 million, marking a sequential increase of 35% and more than doubling compared to the previous year.
- Total Income: Total income increased by 16% quarter-on-quarter and 61% year-on-year to AED 174 million.
- Customer Deposits: Customer deposits grew strongly by 9% in the quarter.
H.E. Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors, UAB, expressed confidence in the bank’s performance, emphasizing its strategic execution and support for growth and shareholders’ expectations. Shirish Bhide, CEO of UAB, highlighted the bank’s consistent performance throughout the year, driven by the successful execution of its strategy and prudent risk management approach.
UAB’s focus on asset quality, efficient balance sheet deployment, and capital strengthening initiatives has contributed to its strong financial position and improved shareholder returns. With a cautious outlook amid evolving market dynamics, UAB remains well-positioned to capitalize on growth opportunities while maintaining its commitment to sustainable growth in the UAE.
